Background Check in College Towns

[Minh Lai]

Hello! 

I will be renting out a town house in a college town (Norman, OK). My question is should I charge a fee and use the money to do a background check? If they're a student I figure it wouldn't be needed. As for a credit check I assume that will not tell me much about the person. I'm more comfortable asking about their source of income and asking for verification.

What should I pay attention to in a background check?
Misdemeanors, felonies, debt

Where should I do my background check? 
In person at the state department? HERE
What's the easiest and cheapest way to do it? Do you recommend a site? 

On another note, any tips about the lease? 
I'm offering them a small discount if their parents co-sign the lease. 

[Account Closed]

I rented to students in Santa Clara, CA.  I only used month-to-month agreements, in case there were problems - much easier to get rid of them.

I did not accept co-signers.  I didn't want to deal with their mommies.  I told them I don't care where there rent money comes from.  I only dealt with tenants on the lease.  If there were problems or the rent didn't get paid, they get evicted.  Having co-signers is a pain.  

I did run credit checks.  I also required them to prove they were current students in good standing.  If they are, they will have a current working college email address, for one thing.  If they are getting student aid, you can also require a current copy of their current financial aid letter.

If they are international students, have them prove they are a student in good standing and show you their student visa in their passport.

I also learned that grad students are much better than undergrads.  So, if you can figure out how to target grad students, that would be best.  I developed a relationship with the housing director for the law school at the university next to our building.  She would post our vacancies on the law student website.

I also gave a $100 rent credit to current tenants who referred new tenants I rented to.  I normally had a waiting list.

But, really, if nothing else, go with a month-to-month agreement.  If you're worried about summers being vacant, don't be.  There are summer interns looking for summer rentals.  And if you let your students sublet their apartments over the summer, the units should stay full.  

And if roommates change, it's easy to write up a new agreement if your agreements are MTM.  The roommate who wants to leave gives 30 days notice, then you write up a new agreement with the new roommates.

Make sure your agreements say that you keep the original security deposit.  If roommates change, it's between them to deal with deposits amongst themselves, and that when the security deposit gets refunded, it will be in the name of the original tenants - unless everyone agrees otherwise, and you do too, and you all sign some sort of agreement.  But, my point is, don't let them pull you into their roommate squabbles over who is moving out and their portion of the deposit, etc.